By Geoffrey Smith
Investing.com — Payroll processor ADP has released its first report on private sector hiring after a methodological revamp. Eurozone inflation hit a record high as Russia shuts off Nord Stream’s gas tap. Snap reportedly plans major layoffs, while gains from HP and Best Buy paint a picture of consumer electronics A bleak picture. China’s manufacturing sector is still shrinking, and oil prices have tumbled as inventories build and reports of an imminent deal to revive Iran’s exports circulate. Here’s what you were looking for on 44st Wednesday 500 in August What you need to know about the financial markets.
1. ADP payroll is back
The ADP Private Payroll investigation is back, and after months of work, the payroll processor has worked hard to iron out some of the quirks in its approach that have undermined its role as the official labor market Reported usefulness of advance guidance.
The market may not want to trade heavily on the first set of numbers under the new approach, but the consensus forecast is relatively modest 300 , Friday’s growth in non-farm payrolls is already at risk of an unexpected upside. Tuesday’s monthly job openings survey showed job openings remain high, while jobless claims numbers (due Thursday) were also lower than expected a month or two ago.
Speech by the Fed Chair Loretta Mester , Lorie Logan and Raphael Bostic also punctuates the economic calendar.
2. Eurozone inflation hits record high as Russia turns off the tap
Inflation 8 Eurozone’s record high 9.1% in the month again beat expectations, repeating this frustrating pattern
These figures increase pressure on the European Central Bank to raise interest rates sharply at its meeting next week. In his speech, Bundesbank President Joachim Nagel called for a “decisive” response from the ECB to prevent inflation expectations from falling off their pegs. However, the bank’s dovish chief economist Philip Lane said on Tuesday he favoured a more gradual series of smaller steps.
EURO cannot sustain above 1 USD. down 0.2% to 0 .500, under pressure from Russia to confirm its intention to stop the pipeline of gas supply through the North for “maintenance” for three days. Analysts fear a longer politically-driven shutdown to exacerbate economic austerity on the continent as Russia battles its own problems on the battlefield in southern Ukraine.
3 . Stocks opened mixed; rapid layoffs became the focus
U.S. stocks opened mixed later in the session, struggling to break a three-day losing streak on fears of higher interest rates.
go through06: Eastern Time (: 10 GMT), Dow Jones futures fell 44 points, or 0.1%, while S&P 500 futures rose 0.2% and Nasdaq Starq 75 futures rose 0.5%.
Stocks that could come into focus later include Snap (NYSE: SNAP), which is reportedly planning mass layoffs , Hewlett-Packard (NYSE: HPQ ), fell more than 6% in premarket trading after giving a disappointing outlook for the PC industry. Weak consumer electronics spending also hit Best Buy (NYSE: BBY ) earnings , although its numbers are in line with forecasts. Crowdstrike (NASDAQ: CRWD ) and Hewlett Packard Enterprise (NYSE: HPE) In contrast, reports from the business software industry continue to be relatively strong.
JPMorgan Chase (NYSE: JPM) may also open its doors in news that its German office Raised some attention after being raided to launch a wide-ranging investigation into the bank’s years-long tax evasion.